Top 3 High-Yield Dividend Stocks for August 2022

With the exception of the energy sector, the month of July was extremely green on the stock market, which might have you wondering where did all the dividend stock discounts go? Well, guys, in today's article, I'll share with you 3 dividend stocks to buy in August, 2022, all of which offer high yields to give your dividend income one heck of a boost. 

My criteria in choosing the three stocks on our list to talk about today, I'm pretty much looking for three things. Number one, I'm looking for a negative share price performance, at least in the last 30 days, I want to see that share price going down.

And I want to see these stocks getting more affordable, which leads us to number two, the second thing I'm looking for is an overall attractive valuation. And all three stocks we're talking about in today's video have a single-digit PE ratio, so they should be pretty cheap. And the third thing I'm looking for, obviously, guys are solid dividend stats. 

And I mentioned in the intro that all three companies we're talking about today have really high dividend yields all above at least 4.50%. And all of these have a really solid consistency as well. Each one of these three companies has been paying their dividend for no less than 38 consecutive years.

#1. Number

the first stock on our list to talk about today that I think is going to be good to pick up in August we're talking about AT&T($T). who in the last year is down 13% really not had a great year. And a lot of these losses in the last year have actually come in the last month where they're down a lot 8.37%

A lot of the losses in the last month happened on one day on July 21, which actually fun fact happens to be my birthday. But on July 21, AT&T reported their quarterly earnings, and it was not great. And it had the share price of this company dropped 7.62% just in one day.

Now the big hiccup that came out of this earnings report was a lower expected guidance for their free cash flow, which they are anticipating is going to be down to 14 billion from 16 billion and there are a couple of reasons for this. I'm sure many of you out there already know this because it happened nearly a week ago,

But they are using more of this free cash flow to reinvest into the business put that more towards promotions and acquiring new subscribers which is actually working and this is one of the good things that did come out of the earnings. They added a lot a lot of new customers in the last quarter.

So they added 800,000 postpaid phone subscribers and 300,000 Fiber Internet subscribers. Additionally, the company said that their net debt fell by 37 billion compared to the first quarter of the year. A lot of this actually was probably a result of spinning off Warner Brother's discovery and this is the first earnings report to come out since spinning off that into the new company.

Additionally, another positive piece of news coming out of the earnings report is just the high-level stuff they beat on the revenue they beat on earnings. So overall, things are looking really good. But this lower expected free cash flow seems to just be overshadowing everything.

But if you have a long-term mindset, if you plan to hold at&t for a long period of time, this is actually a really good thing in the short term. And we talked about this all the time. You guys know the reason why because when that share price comes down, it makes the stock cheaper to buy number one, so you can get more bang for your buck and pick up more shares for less money. 

But number two, the lower share price pushes that dividend yield up and it means that you have a greater cash flow return on your investments, especially why we buy a company like 18 t, which is really not a high-flying fast growth company, we really are buying it more for that steady stable dividend income, which it tends to provide, 

If we look at their valuation which is getting better over time. Seeking Alpha gives them a really nice valuation grade of an A minus that's really sweet. And the forward P E ratio that's sitting at 7.38. So in the single digits, very nice. And this happens to be 57% lower than the sector median PE ratio. 

So compared to a lot of the other companies out there in the communication sector, AT&T is sitting at a relatively bigger discount. And the same is true compared to its historical five-year average is 22% lower than the company's five-year average P E ratio of 9.46. 

So all across the board AT&T is looking to be at a really nice valuation right now, which definitely makes it a tempting buy. Now going over to the dividend stocks, this company has a really high four dividend yield sitting at 5.87%. With a payout ratio that's not too shabby, 55.51% and moving on we do see a negative five-year growth rate in zero years of dividend growth.

But guys, this is no surprise when they spun off Warner Brothers into Warner Brother's discovery you guys know this already. This is old news, they cut the dividend and reduce the dividend so that's why we're seeing the negative growth but they do have some really solid consistency in terms of paying the dividend 38 years of consecutive dividend payments. 

So that is pretty reassuring. As you know, from an investor standpoint, I think that just so you guys know my plans with 18 T I am holding strong guys I'm hanging in there, but I'm not quite adding any more to this position right now. But the only reason I'm not adding more to my position is because I already have so much AT&T right now is one of the top five biggest positions in my portfolio.

#2. Number

Stock number two that I think is going to be a good one to pick up in August we're talking about Walgreens Boots Alliance ($WBA), which is a pharmacy and drugstore chain here in the United States, which I'm sure many of you are aware of already seeing as apparently 78% Yes, 78% of the US population lives within five miles of a Walgreens. That's pretty impressive.

What's also impressive is how poorly this stock share price is performing now year to date, they're down over 27% in the last 30 days, and they're down another 3.49% so Walgreens is going through a tough time. As far as share price performance goes and really guys, truth be told they're getting it from every sort of angle, 

and all year this company's been in the news with some not-so-great headlines starting with this first one guys that read Walgreens reports decline in third-quarter sales amid waning COVID impact. So this company was a pretty big beneficiary of the COVID pandemic,

Okay, they gave out a lot of vaccines, which definitely boosted their sales so they're starting to lose that short temporary boost they had in sales from the pandemic which is to be expected. The second headline has to do with their boots chain of stores, which is basically the UK version of Walgreens. 

And this headline reads Walgreens falls after the sale of boots UK chain terminated so they're having a hard time getting rid of parting ways in selling the boots chain of stores, they can't seem to find a buyer right now. I think they had a couple of potential buyers lined up but as you guys know, the economic environment is starting to change which maybe will make buyers not as eager to pick up this chain of stores right now. 

Moving on to the third and final headline I wanted to share this is really not a good one Walgreens goes to trial in Florida over its role in the opioid crisis. And one person in this article even went so far as to say or to quote, It was the entity Walgreens was the entity that actually put the opioids in the hands of people addicted to opioids, and in the hands of criminals, definitely not something you want to attach to your company.

Definitely not something you want to attach to your brand. So as you can imagine, that's not a good look for Walgreens. And the combination of these three things as well as some other things we could probably draw up is pushing the share price down which is like AT&T this is a good thing in the short term. 

If you have a long-term mindset with the companies that you're investing in, it's definitely making the stock cheaper, and it's making the valuation better like with a TNT Seeking Alpha gives the valuation for WBA and (A-) which is a really strong grade and the Forward PE ratio is looking at Sweet 7.63 which is about 57% lower than the sector median PE ratio.

And is about 25% lower than the company's five-year average PE ratio. So all across the board, Walgreens guys looking really cheap, and this company have some really solid dividend stats to go along with that it has a 4.99% for dividend yield with a pretty low payout ratio with room to grow by about 37.4%.

The five-year growth rate is pretty sustainable at just under 5% With seven years of consecutive dividend growth but this company does have some consistency with the dividend payment history and as they've been paying the dividend for 45 consecutive years.

#3. Number

The third and final stock and this is one that I actually included in my list of best stocks to buy in July and it's making its appearance again for the month of August we're talking about Altria Group ($MO). Now year to date, this company is down double digits down just over 10% in the last six months, they're down even more down 13.73% 

And in the last 30 days, this is actually breaking my criteria in the last 30 days they're up 2.75% They're starting to rebound a little bit and many of you know a lot of the turbulence this company has had with its share price is due to ongoing conflict with the FDA who is trying to do two things to Altria Group.

Number one they've been trying to ban JUUL which is Altria Group's electric cigarette subsidiary they're trying to ban JUUL remove it from the shelves make it so Altria can't sell any more of the products or manufacture any more of the products.

Number two, they're trying to reduce the level of nicotine and outrageous cigarette products to a non-addictive level.

Basically making it so people can no longer or at least have a lot harder time becoming addicted to cigarettes. No moving on into this company's dividend stocks. They've got a high yield currently sitting at 8.42%.

They've got a pretty high five-year dividend growth rate 8.09% also according to Seeking Alpha, they have 18 years of consecutive dividend earnings growth.

But Altria group actually is a dividend king with 52 years of consecutive dividend growth. So they've got the high yield, they've got the high growth and they've got the dividend growth history and the dividend King status as well. 

So, those were the three dividend growth stocks which you can buy and hold. It will provide you a high dividend.